The new law would make it illegal for federal regulators to "prohibit, penalize, or otherwise discourage a depository institution from providing financial services to a cannabis-related legitimate business or service provider or to a State, political subdivision of a State, or Indian Tribe that exercises jurisdiction over cannabis-related legitimate businesses." The law also prohibits other corrective actions against such banks, including incentivizing banks to not provide services to marijuana businesses like loans or lines of credit.

Potholes in the Road?

The legislation got bipartisan support in the House, passing easily by a 321-103 vote. So, what will happen in the Senate? While some financial experts remain skeptical, chairperson of the Senate Banking Committee Mike Crapo has said that he wants to advance the bill. Proponents point to the fact that the bill does not address whether marijuana should be legal or not -- only that banks can't be punished for working with those business in states that have legalized it.

That should appease many Republicans that oppose legalization. "It's a problem that keeps coming up," Florida Senator Marco Rubio said. "I think you can be against marijuana and still understand that if it's going to be a legalized product, we need to be able to control it through our banking system." There has also been little resistance from President Donald Trump, and the bill's authors included protections for hemp, designed to cater directly to Majority Leader Mitch McConnell and other hemp-industry backers who pushed hard for its legalization in the 2018 farm bill.

The Senate will now begin consideration of the SAFE Banking Act, although a future vote is uncertain.